JAIPUR: Rajasthan Agriculture Minister Kirori Lal Meena alleged a huge scam under the Pradhan Mantri Fasal Bima Yojana (PMFBY) stirring a political storm during the state assembly on Monday.
Referring to a probe by the state’s Special Operations Group (SOG), the minister claimed that an organised “insurance mafia” has been robbing farmers of their rightful compensation.
Responding to a question raised by Shergarh MLA Babu Singh Rathore, Dr Meena told the House that a scam worth crores of rupees had been carried out through alleged collusion between insurance companies and bank officials.
Presenting detailed figures, the minister said that a scrutiny of 32,000 intimation forms—out of 1.70 lakh submitted in Karanpur (Ganganagar district)—revealed serious irregularities. Surveyors allegedly forged the signatures of farmers and revenue officials.
In several cases, farmers who had suffered crop losses ranging from 50 to 70 percent were shown as having incurred “zero percent loss” on official records.
According to the minister, the fraud resulted in losses of Rs 128 crore belonging to farmers.
Dr Meena directly named Kshema Insurance Company, alleging that it was found to be a prima facie defaulter. “Kshema Insurance Company kept this amount and earned interest on it. The investigation is ongoing,” he said.
An FIR (No. 0210) has been registered at Rawala police station under relevant sections of the IPC, and the SOG will now conduct a detailed investigation.
Preliminary findings suggest the involvement of company employees, certain bank officials, and external “mafia” elements. The alleged scam spans multiple districts, including Nagaur, Bikaner, Churu, Sanchore, and Jalore.
The Rajasthan government has written to the Government of India seeking blacklisting of the company and urging that no future tenders be awarded to it, though empanelment decisions are taken at the central level.
The investigation also found that in some cases, bank branches lacked essential farmer documents, yet premium cards were issued based on savings accounts. Had premium cards worth Rs 13.78 lakh been processed fully, the state and central governments would have borne a liability of nearly Rs 9 crore. The state government has decided to release Rs 122 crore to affected farmers following hearings before the PCRC and SRC, the minister informed the House.
Dr Meena also cited another case involving State Bank of India in Salasar, where 71 accounts were allegedly opened using fake documents. In some instances, loans were sanctioned with minor alterations in names. The Tehsildar of Gajner tehsil in Bikaner district reportedly confirmed that no genuine farmers were registered under the names used. Premiums in these fake cases were deducted from savings accounts without Kisan Credit Cards (KCC).
Calling it a “robbery of farmers’ hard-earned money,” Dr Meena asserted, “We have lodged an FIR at Rawala police station and now the SOG will get to the root of the matter. No guilty officer or employee will be spared.”